Armed Forces: Combined Aerial Target Service

Lord Drayson: My right honourable friend the Minister of State for the Armed Forces (Adam Ingram) has made the following Written Ministerial Statement.
	I am pleased to announce that, following a competition, QinetiQ has been selected as the preferred bidder to supply and operate the subsonic target element of the Combined Aerial Target Service (CATS) programme. Contract award is expected to take place after a period of final negotiations.
	This decision marks a significant step forward for the CATS project. This project will provide a rationalised supplier base for MoD and will produce savings in the order of 10 per cent of the total cost over the 20-year life of the contract. It will also mean we have a single provider for subsonic aerial targets.
	The contract we intend to place will be for a contractor owned and operated service. The preferred bidder will supply and operate subsonic aerial targets for the Armed Forces, working with the MoD aerial targets systems integrated project team (ATS IPT). Supersonic aerial targets will be procured by the ATS IPT from the US.

Armed Forces: Project Allenby/Connaught

Lord Drayson: My honourable friend the Parliamentary Under-Secretary of State for Defence (Don Touhig) has made the following Written Ministerial Statement.
	I would like to inform the House about progress with Project Allenby/Connaught. This private finance initiative (PFI) project will allow for the redevelopment of large areas of the estate in Aldershot Garrison and garrisons in the Salisbury Plain area, and for the provision of a wide range of support services. It is key to the delivery of strategic defence review barrack plot and is the largest estates-based PFI project the Ministry of Defence has ever undertaken.
	Funding of the project will be through the marketing of two series of bonds on the financial markets, and I am pleased to report that this phase has now started with the issuance of a preliminary prospectus. This process is expected to take two to three weeks and I will make a further Statement to the House once there has been financial close, the point at which funding for the project has been secured, and the contract with our preferred bidder, Aspire Defence Limited, takes effect.

Army Base Repair Organisation

Lord Drayson: My right honourable friend the Minister of State for the Armed Forces (Adam Ingram) has made the following Written Ministerial Statement.
	On 8 November 2005 I announced to the House proposals for a second phase of rationalisation of the ABRO trading fund to address its need to become a significantly more efficient business in a rapidly changing market for the repair, maintenance and overhaul of armoured fighting vehicles and other land based equipment. This was subject to normal trade union consultation. Consultation with the national trade unions completed on 27 January 2006. Following subsequent discussions within the MoD, and consideration of the latest view on ABRO's order book, I am now in a position to make a further announcement.
	I remain convinced that rationalisation of ABRO remains necessary: the business must make continuous improvements to its competitiveness and efficiency if it is to have a viable future.
	I have therefore decided that the rationalisation of the LAND/B vehicles business unit (known as ABRO's "one stop shop" for unprogrammed repair) will proceed as announced in November 2005, including the closure and re-provision of the Colchester site and the potential sale and lease back of part of the Warminster site, with a headcount reduction of up to 339 by April 2008.
	Since November 2005, however, there have been a number of developments which have a potentially material impact on the proposed rationalisation of ABRO's other four business units (armoured vehicles; major assemblies; electronics, weapons, optronics and calibration; and head office). The principal of these is a deeper understanding of the likely threat environment on deployed operations over the coming period, which will require us to update and upgrade more armoured vehicles.
	To ensure we continue to have the capability to provide appropriate protected mobility for our soldiers, we have therefore decided to extend the depth repair programme for the Fv430 fleet of armoured fighting vehicles, which is carried out at ABRO's Bovington site. Consequently, the intention to move the Warrior and CVR(T) lines from Donnington to Bovington by March 2007 will not take place as previously planned. This will result in the armoured vehicle facility being retained at the Donnington site for the medium term.
	However, there remains a pressing need for improvements to the efficiency and effectiveness across all of ABRO's operations, including the remaining four business units. The recent decision on the Fv430 and the consequential impact on Donnington will mean that the rationalisation proposals will need to be re-examined. The results of this work will be announced later in the year and, if necessary, there will be further consultation with trade unions.
	This Government remain committed to modernising our Armed Forces. To do so, we must continually look for more efficient support solutions to enable us to invest more resource to support our men and women at the front line. While this news represents a welcome development for the Donnington armoured vehicle facility, I hope to be able to confirm the final position on rationalisation later in the year.

Bolivia: Floods

Baroness Amos: My honourable friend the Parliamentary Under-Secretary of State for International Development (Gareth Thomas) has made the following Written Ministerial Statement.
	Since January, Bolivia has been experiencing above average rainfall, as well as hail and freezing temperatures in the highlands. Rainfall levels are reported to be at their highest in over 75 years and more is expected over the coming weeks. Twenty-three people have died as a result of flooding, while another 280,000 people have been affected.
	As well as causing damage to infrastructure, homes and crops, reports are emerging of increased incidence of diarrhoea, gastro-intestinal diseases and conjunctivitis in affected highland communities; 9,347 families have been evacuated to temporary accommodation. The Bolivian Air Force has been assisting in search and rescue efforts, and the Government are distributing relief supplies.
	Following a request for international assistance from the government of Bolivia, DfID has channelled £100,000 through CARE UK to meet immediate relief needs and to rebuild livelihoods. The programme will target 2,700 of the worst affected families, repairing local water systems, supporting health facilities and providing urgently needed relief items such as jerry cans. It will also contribute to programmes to reduce the impact of future disasters, whilst the livelihoods support will help fill the food gap over the coming months.
	The US has provided some $300,000 of urgently needed relief items such as plastic sheeting and 100 tonnes of food. France has recently committed €1 million, largely for support to health. The European Commission Humanitarian Aid Office has also provided €1 million for water and sanitation, health, food security and disaster preparedness, of which the UK's share is €200,000 in addition to our £100,000 of bilateral support.
	DfID also remains committed to Bolivia through our multilateral contributions, our support for NGO activity and through our regional assistance plan (RAP) that has set the framework for DfID's involvement in Latin America. The value of DfID's regional assistance plan for 2006 is £8 million.

Child Protection: Northern Ireland

Lord Rooker: My right honourable friend the Secretary of State for Northern Ireland (Peter Hain) has made the following Ministerial Statement.
	The protection of children is a matter that I and other government Ministers in Northern Ireland take extremely seriously and an area in which we have prioritised action. There have been a number of high-profile child protection cases and inquiries in Northern Ireland, the Republic of Ireland and Great Britain, all of which have demonstrated the need for system improvement. Ministers are committed to ensure the highest levels of protection are afforded to children in Northern Ireland. The purpose of this Statement is to set out a package of child protection measures and initiatives that we intend to bring forward.
	It is not possible to separate out protection of children from prevention and support for parents, safe systems, funding and a range of interrelated government policies. On children's issues this administration has taken a number of bold steps to build on the work of previous Ministers and the Northern Ireland Executive. Recently I appointed Jeff Rooker as the Minister for children and young people to bring greater co-ordination to children's policy and legislation across government. This builds on the work of previous ministers in the Northern Ireland Executive which established the Commissioner for Children and Young People to safeguard the rights and best interests of children and young people in Northern Ireland.
	We will shortly publish a 10-year strategy for children and young people. This strategy will set out what will be done across government to improve the lives of children and young people in Northern Ireland. It will contain high-level outcomes and indicators against which we will measure progress.
	Allied to this are the new funding arrangements we have put in place for improved children's services. The children and young people's funding package will make £61 million of additional funding available over the next two years and is aimed at removing barriers to learning, reducing underachievement and improving the life chances of disadvantaged and marginalised children and young people. The range of measures it includes will help schools in these areas extend the traditional school day and offer a range of activities and services to children and their families before, during and after school hours, wherever possible on the school site.
	In addition to all of this we are today announcing a range of measures to strengthen the child protection system.
	I would like to emphasise that the protection and safeguarding of children is everyone's business: Ministers, government departments, local government and the statutory, voluntary and community sectors. The public also clearly have an important role to play. There is a need to ensure that collective responsibilities are reflected in our systems and structures and that the protection and safeguarding of children is on everyone's agenda. Therefore we intend to take the following action.
	We will strengthen inter-agency co-operation on child protection through the establishment of a new Northern Ireland safeguarding board. This will ensure co-operation on child protection and safeguarding arrangements at the highest level within government departments, local government and in the statutory, voluntary and community sectors. It will have an independent chair and clear accountability lines to Ministers. The board will be established in shadow form by the end of this year. We will publish a consultation paper on arrangements and structures underpinning the safeguarding board which will be given statutory basis.
	The Department of Health and Social Services and Public Safety will shortly begin piloting a multi-agency, multi-disciplinary assessment framework aimed at ensuring that the needs of vulnerable children and young people are assessed on a consistent basis across Northern Ireland. Allied to this, front-line child protection services will be enhanced and reorganised over the next 12 months to ensure a more expert, more consistent and faster response when assessing children in need and responding to child protection concerns.
	The Department of Health and Social Services and Public Safety will shortly issue a consultation document on a regional child death review protocol. This will implement one of the key recommendations arising from the Lewis inquiry and the case management review into the death of David Briggs. These arrangements will apply to the unexpected deaths of all children under 18 years of age and will ensure that all relevant information about a child's death is brought together at an early stage. The protocol will acknowledge that the vast majority of children who die tragically do so for natural reasons or for reasons that can be explained. It will also help ensure that bereaved parents will receive a more co-ordinated response.
	New structures are important. However, they also require a change of thinking, practice and culture. We will look at ways in which this can be facilitated. For example, we will consider a new statutory duty to co-operate to improve well-being. This would take account of current structural arrangements and those proposed under the reform of public administration. We will also consider how this might be complemented by a statutory duty to make arrangements to safeguard and promote the welfare of children, a duty which school boards of governors now have, but which would be placed on a wide range of agencies and organisations. It is our intention to consult on these new statutory duties in the near future.
	I am keen to ensure that safeguarding the welfare of children remains a high priority for all, particularly at a time of considerable administrative reform, and that the risk of children falling between stools is minimised. I intend to commission all departments, executive agencies and non-departmental public bodies to conduct an audit of existing child protection arrangements to determine how these might be strengthened. I also intend to ask those inspectorates and regulatory bodies with responsibility for children to assist with audit exercises, by offering professional input. As recommended by the Commissioner for Children and Young People, I will ask all departments and relevant executive agencies and non-departmental public bodies to appoint a senior official with responsibility for child protection. Nominated officials will receive the necessary training, will be the custodians of child protection policy and will ensure that systems are in place that provide assurances that policy is being appropriately applied.
	Local government clearly plays an important role in the lives of children and young people in Northern Ireland. It is absolutely essential that local government has robust protective arrangements in place. The Lord Rooker, in his dual role as Minister for Children and Young People and Minister of the Environment, has undertaken to engage with district councils to promote an acceptable standard of child protection practice.
	It is essential, when there are child protection concerns, that there is certainty and confidence about how those concerns are reported. To help create greater certainty, I have asked the Department of Health, Social Services and Public Safety to prepare short guidance on child protection, which will set out what steps need to be taken when there are concerns about the safety of a child. This guidance will be widely distributed through government and, with the assistance of the four area child protection committees, local government, the statutory, community and voluntary sectors.
	I would like to turn to the matter of vetting arrangements for those who work with children. This is a matter which is of great concern to parents and the public. We must ensure our systems are safe, robust and reliable and, most importantly, that they have the confidence of the public. The tragic events in Soham act as a constant reminder.
	In Northern Ireland, vetting arrangements have recently been strengthened by government. My colleague Angela Smith MP announced on 18 January a wide-ranging review of vetting and recruitment for staff in the education sector. New measures have now been introduced which will strengthen the pre-employment checking for all new recruits to work in schools or in support of schools and will provide clear guidance to employers and schools. A programme to promote full vetting coverage of all staff already working in or in support of grant-aided schools and the vetting of governors will provide reassurance to the public, and parents in particular, about the safety of the environment in which children are educated. Procedures for the engagement of substitute teachers and other temporary staff have been tightened, as have the arrangements for training members of selection panels. We are implementing Part V of the Police Act 1997 to ensure the Police Service of Northern Ireland has a statutory basis to disclose relevant non-conviction data on posts that involve work with children. We continue to work with the Commissioner for Children and Young People, who recently conducted a review of vetting arrangements in Northern Ireland. The review endorsed the Government's work in this area. Recommendations arising from the review are currently being implemented and we have provided the commissioner with an update on progress. We will also provide the commissioner with a timetable for the completion of outstanding actions and will co-operate fully with his planned follow-up review later this year.
	Sir Michael Bichard's inquiry and subsequent report, following the Soham tragedy, provides a route map for system improvements that have United Kingdom-wide applicability, particularly his recommendation, which will lead to the creation of a new vetting and barring scheme. New legislation, the Safeguarding Vulnerable Groups Bill, will shortly be introduced in Parliament.
	I am confirming today that the new vetting and barring scheme will apply in Northern Ireland and departments will be working in close collaboration to take forward the implementation of the new legislation. Our aim is to ensure that Northern Ireland keeps pace with developments both in the United Kingdom and the Republic of Ireland.
	Parliament enacted the Protection of Children and Vulnerable Adults Order in 2003. This legislation brought Northern Ireland into line with developments in England and Wales with the creation of a new statutory list of those banned from working with children and a new offence of applying to work in certain posts while disqualified. There is a unique provision in POCVA relating to "accreditation arrangements". The order allows non-child care organisations such as churches and uniformed and sporting bodies in Northern Ireland to become accredited by the Department of Health, Social Services and Public Safety. Once accredited, those organisations will acquire a statutory duty to carry out vetting and to report staff moved or dismissed for harming children. To become accredited, organisations will have to demonstrate that they meet specific child protection standards, including the need to have in place a child protection policy and a code of conduct for staff.
	Accreditation will, in effect, "kite mark" organisations and will assist in improving child protection arrangements in voluntary and community organisations. We will shortly be publishing a consultation paper on the future shape of accreditation arrangements and are aiming to see the situation where all organisations which work with children do so within a framework that ensures the highest standards for children.
	When the Sexual Offences Act was made by Parliament in 2003 a number of new child sex offences were not extended to Northern Ireland. We intend to ensure that children in this jurisdiction will receive the same protections as those in England and Wales. My colleague David Hanson MP will shortly be announcing more detailed proposals on a review of sexual offences law in Northern Ireland. This will see the creation of new offences and increased tariffs for those who harm children.
	Government will also seek to bring forward legislation to strengthen the inter-agency arrangements that exist, currently on a procedural basis, for the assessment and risk management of sex offenders. These arrangements, known as MASRAM (multi-agency sex offender risk assessment and management), were launched in 2002. While they have worked well, it is our intention to give MASRAM arrangements statutory force and to ensure that risk assessment and management arrangements are extended to violent offenders. As with new child protection arrangements we will seek to underpin the operation of assessment and risk management of sexual and violent offenders with a duty on agencies to co-operate with the police and prison and probation services.
	I conclude by saying that the proposed measures I have announced today represent a firm foundation for the protection of children from those intent on causing them harm. I recognise that we can never be complacent and we will seek to continually build on and strengthen and improve arrangements to ensure that all of our children and young people are afforded a high standard of protection, comparable to that afforded to children and young people living in other parts of the United Kingdom.

Disability: Incapacity Benefits

Lord Hunt of Kings Heath: My honourable friend the Minister for Disabled People (Anne McGuire) has made the following Written Ministerial Statement.
	I am pleased to announce these changes to the permitted work rules. Research has shown that almost a quarter of people trying permitted work have found jobs. We aim to make improvements to the current arrangements to enhance the attractiveness of this provision, with a better structure of information, support and guidance to assist more people on incapacity benefits to progress to full-time work. The accompanying changes to the rules will allow all participants an initial 52-week period of permitted work earning up to £81 a week. In addition, people with advanced, progressive conditions which severely limit their capacity for work will be able to earn up to £81 beyond the 52-week limit.
	The notice requirements for permitted work are removed by these changes to provide a simplification of the rules and people preparing for self-employment through the test trading scheme will no longer be subject to the permitted work earnings limits but will instead be treated as undertaking training.
	In addition, the Government are also making changes to improve the operation of the linking rules which protect the rate of benefit for people who return to incapacity benefits having become incapable of work after attempting work or training. These changes ensure that people who notify a return to work in advance are entitled to the same protection as those who provide notification after the event and that people who receive statutory sick pay before incapacity benefit are eligible for protection after six months of incapacity in the same way as incapacity benefit recipients now.

Education: Early Reading

Lord Adonis: My right honourable friend the Secretary of State for Education and Skills (Ruth Kelly) has made the following Written Ministerial Statement.
	Jim Rose has today published the final report of his review into the teaching of early reading, which I invited him to undertake in June 2005. It builds on the interim report published on 1 December 2005.
	I am very grateful to Mr Rose and his team for providing such an authoritative analysis of these complex issues, and for distilling them into a set of recommendations that enable us to help schools and settings to move forward with confidence and clarity. The report sets out clearly the importance of high quality and enjoyable systematic phonics instruction, on which the great majority of children can make a good start by the age of five. It emphasises the need for a carefully managed programme of training to ensure that we have a school and early years workforce that is fully equipped to deliver phonics instruction of the high quality our children deserve. The report states that the most important way to raise standards is through "quality first" teaching, but that schools need to back this up with a systematic approach to interventions to make sure that they can intervene early to prevent children falling behind.
	I am pleased to accept all the recommendations in the report, and I will ensure that they are implemented through a programme of training for teachers over the next two years, revising the framework for teaching literacy, and the professional standards for teachers and the wider workforce. I also want to ensure that both the foundation stage and key stage 1 curricula make it clear that synthetic phonics should be the prime approach used in teaching all children to read, as Mr Rose has recommended, and I will consult on how to remove any ambiguity in them. I am very pleased that Mr Rose has agreed to help me assess how well the recommendations he has made are being implemented, by offering his advice on progress from time to time.
	Implementing the report's recommendations will form part of the Government's drive to raise standards in literacy yet higher through effective personalised learning for all children. Personalised learning is at the heart of our effort to raise standards in both primary and secondary education, and will be the focus of the teaching and learning 2020 review, led by Christine Gilbert, which was launched last week.
	Mr Rose's report is a timely reminder of how important learning to read is for children's educational, social and emotional development. Great improvements have been made in the teaching of reading since the introduction of the Government's national literacy strategy, and more children than ever before are reaching the expected standard at the end of primary school: 84 per cent last summer compared to 67 per cent in 1997. The report says that this happened because the national literacy strategy,
	"engaged schools in developing a structured teaching programme of literacy that included not only what phonic content should be taught but also how to teach it".
	I am proud of what has been achieved, but we must not stop raising standards. The report provides compelling support for the argument that raising standards and helping more children to read should be the first priority of every primary school, which requires strong leadership from the governors, head teachers and senior managers.
	The report shows clearly that learning to read can and should be fun, through a programme of high quality phonics teaching. It points to much evidence of good practice in schools and early years settings, including in the early reading development pilots that I announced alongside Jim Rose's review. It is clear that good teaching means fidelity to a systematic programme of phonics teaching, using multi-sensory approaches to learning and placing this within a rich language curriculum. I am grateful for Mr Rose for the proposals for a new "simple model of reading," to put these ideas into effect and will ask the primary national strategy to implement this through the forthcoming revised framework for teaching literacy.
	Mr Rose's analysis makes it clear that children should start phonics by the age of five, and that those who are ready to start earlier should do so. He states that the introduction of phonic work is a matter for professional judgment based on structured observations and assessments of children's capabilities. The early reading development pilots are already showing that systematic phonic instruction by the age of five can be done successfully in schools and early years settings exploiting the power of play, story, songs, rhymes and drama. I will ensure that the conclusions of the review are reflected in the new early years foundation stage.
	I agree with the report's conclusion that these changes will require a carefully managed programme of training for teachers and the wider school and early years workforce. The Training and Development Agency for Schools (TDA) is already revising the professional standards for teachers, and developing standards for the wider workforce, with supporting guidance and requirements. These will reflect the review's recommendations and set the requirements which training must meet. Mr Rose has acknowledged the excellent contribution that the primary national strategy has made to improving the teaching of reading and the use of systematic phonics. I will ensure, through the strategy, that teachers' training is enhanced in accordance with the report's recommendations and the new framework for teaching literacy over the next academic year. The quality of initial teacher training (ITT) has also improved significantly, with 80 per cent of trainees showing good or very good subject knowledge in English. But I, and the TDA, share Mr Rose's view that ITT providers need to look again at how to equip newly qualified teachers with the skills to teach phonics. The TDA and the primary national strategy will ensure that support is available for ITT providers to help them implement the new standards over the next two years, and I will ask Ofsted to review the quality of training in the teaching of reading that ITT providers offer at the end of that period.
	Although by far the majority of children reach the expected standard in reading at the end of primary school, there remains a significant group who do not, and who need extra help to achieve the expected standard. I agree with the report's conclusion that for most children, the most important thing their school can provide them with is "quality first" whole class teaching. Alongside this, the report also endorses the primary national strategy's approach to the deployment of a range of "wave 2" and "wave 3" interventions to support those children who find it more difficult to learn to read, or who have more serious learning disabilities. I am pleased that Mr Rose found that some of the leading edge interventions and associated training currently offered to schools are of a very high quality. In particular he praised the training for teachers offered by programmes such as Reading Recovery and those provided by the Dyslexia Institute. We will continue to support schools with guidance on how best provision and practice are matched to different types of SEN. As they implement the new teaching frameworks, every school will need to think through its approach to interventions, ensuring that it is founded on "quality first" teaching, that interventions are carefully managed as part of the wider curriculum, and that the school takes a systematic approach to identifying and meeting the needs of children who are at risk of falling behind before this happens.
	The report makes it clear that schools and teachers have the capacity to implement its recommendations, and that many are already doing so, supported by materials from the primary national strategy and others. I am confident that with appropriate training and support from the strategy, all schools will be able to teach reading to the standards of the best observed in the course of this review.

EU: Economic and Financial Affairs Council

Lord McKenzie of Luton: My right honourable friend the Chancellor of the Exchequer has made the following Written Ministerial Statement.
	At its meeting of 14 March 2006 the Economic and Financial Affairs Council (ECOFIN) adopted a key issues paper on economic reform to contribute to the European Council on 23 and 24 March.
	The council adopted a report to contribute to the spring European Council on proposals by the European Investment Bank for promoting growth and employment in the EU.
	The council held an exchange of views on progress under the EU's better regulation initiative. It took note of progress made by the Commission and of a note from the presidency on reducing the administrative costs of Community programmes and measures and on experiences at national level.
	ECOFIN noted a joint report on social protection and social inclusion, which had been previously adopted by the Employment Council.
	The council adopted opinions on the stability programmes of Germany, Greece, Spain, France, Italy, Ireland, the Netherlands and Portugal and on the convergence programmes of Cyprus, Lithuania, Malta, Poland and the United Kingdom.
	The council adopted a decision, under Article 104(9) of the treaty, concerning the German excessive deficit. ECOFIN also agreed conclusions endorsing progress made by Italy in correcting its excessive deficit.
	ECOFIN approved a recommendation, to be forwarded to the European Parliament, on the discharge to be given to the Commission for implementation of the EU's general budget for 2004.
	The council adopted conclusions regarding the preparation of the EU's general budget for 2007.
	The Economic Secretary to the Treasury, Ivan Lewis MP, represented the UK.

EU: Employment, Social Policy, Health and Consumer Affairs Council

Lord Hunt of Kings Heath: My honourable friend the Parliamentary Under-Secretary of State for Work and Pensions (James Plaskitt) has made the following Written Ministerial Statement.
	The Employment, Social Policy, Health and Consumer Affairs Council was held on 10 March in Brussels. There were no health or consumer affairs issues. I represented the UK.
	The main item items were preparation for the spring European Council and the tripartite social summit through the endorsement of a set of key messages to the European Council.
	The presidency posed three questions to help focus the discussion. The first question was to the council asking if it shared the Commission's assessment on the delays of implementing delivery in certain unemployment policy areas. The second question was on the role of the social partners in strengthening the Lisbon process and the third question was on the progress made with social protection and social inclusion. I supported the key messages paper, particularly the focus on implementation and delivery. I stated that we all need to deliver the promises made to Europe's citizens in our national reform programmes and that we must step up a gear to deliver against Lisbon and contribute to the economic well-being of Europe.
	The council noted the annual work programmes of the Employment Committee and the Social Protection Committee for 2006.
	The council reached general agreement on proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EEC) No. 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community and Council Regulation (EEC) No. 574/72 laying down the procedure for implementing Regulation (EEC) No. 1408/71 (Miscellaneous amendments 2005). This is a regular update of the regulation which co-ordinates social security within the European Union.
	The final agenda item was a Commission presentation on the report on transitional arrangements set out in the 2003 Accession Treaty. These are the measures allowing member states to restrict, for a transitional period, free movement of workers from eight of the new member states. As the UK has opened its labour market, I outlined the benefits the UK labour market has drawn from this. Portugal, Spain and Finland announced that they would be lifting their restrictions from 1 May 2006.

EU: Energy Council

Lord Sainsbury of Turville: My honourable friend the Minister for Energy (Malcolm Wicks) has made the following Written Ministerial Statement.
	I represented the UK at the extraordinary meeting of the Energy Council in Brussels on 14 March. Discussion focused largely on the recent Commission Green Paper on a European strategy for sustainable, competitive and secure energy.
	Commissioner Piebalgs described the Green Paper as a comprehensive and balanced response to the Hampton Court agenda. The Commission envisaged a six-month consultation period before taking a view on any additional measures, although some actions could be taken more quickly.
	For the UK, I recognised the scale of the challenge and need for prompt action. I emphasised the priority of completing the internal energy market, promoting both transparency and regulatory consistency, and supporting the DG Competition sectoral inquiry. Externally, I underlined the need for a coherent strategy to engage key providers, transit countries and consumers, but particularly Russia and neighbouring countries. I also advocated an ambitious but realistic approach to promoting energy efficiency and renewable energy sources. I drew attention to the UK paper identifying priority actions that the spring European council might endorse.
	Other member states indicated broad support for the Commission's analysis, agenda and level of ambition. They welcomed the focus on open and competitive markets, though one warned against further legislation now, while another questioned how competitive markets could be consistent with ensuring energy security. Other issues to attract comment were support for energy efficiency, a long-term renewables strategy, developing interconnections, and new external initiatives with Russia and Euromed countries. Many member states emphasised national sovereignty over energy mix. One explicitly supported the UK paper while others touched on many of the actions proposed there.
	Commissioner Kroes warned that the Commission would act against mergers or acquisitions that were anti-competitive, but noted that cross-border activity in this area was often a positive sign of the operation of an open and competitive market.
	The presidency concluded that the Energy Council would return to the Green Paper in June.
	The council adopted conclusions on Energy Ministers' contribution to the 2006 spring European Council. Council also approved the final text of the energy efficiency directive.
	In two other brief items, the Energy Council is expected to adopt its own conclusions in June on the Agriculture Council conclusions on the Biomass Action Plan; and Poland made a presentation of its idea for an energy security treaty outside the EU framework.

EU: Foreign Ministers' Informal Meeting

Lord Triesman: My right honourable friend the Foreign Secretary (Jack Straw) represented the UK at the EU Foreign Ministers' informal meeting (Gymnich) in Salzburg on 10–11 March 2006.
	The agenda items were covered as follows:
	Middle East
	CFSP High Representative Solana and External Relations Commissioner Ferrero-Waldner provided Ministers with an overview of recent events in the Middle East peace process. Foreign Ministers will return to the issue at the next General Affairs and External Relations Council (GAERC) on 20 March.
	Reactions in the Muslim world to publications in the European media
	Foreign Ministers had an exchange of views on how the EU might engage further with Islamic communities in the EU and the wider Islamic world.
	Iran
	Foreign Ministers discussed the E3's recent meeting with Iranian chief negotiator Larijani and the forthcoming UN Security Council meeting, and wider EU-Iran relations.
	Ukraine
	The presidency reported on the recent EU-Ukraine Foreign Ministers' Troika meeting after which Foreign Ministers discussed EU-Ukraine relations in light of the forthcoming Ukrainian parliamentary elections on 26 March.
	Belarus
	Foreign Ministers discussed the worrying and deteriorating situation in Belarus ahead of presidential elections on 19 March, and the possible EU response. They noted that the OSCE's Office for Democratic Institutions and Human Rights (ODIHR) is monitoring the elections.
	Kosovo
	Foreign Ministers were joined by Martti Ahtisaari (UN Status Envoy) for their discussions on Kosovo. After receiving a report from High Representative Solana on recent developments, Foreign Ministers were briefed by Mr Ahtisaari. Their following discussions focused on support for Mr Ahtisaari's activities.
	EU-Western Balkans Informal Foreign Ministers' Meeting
	Foreign Ministers discussed the western Balkans with the Foreign Ministers of the western Balkans and representatives from Kosovo and international players in the region. As well as recognising the progress made since the Thessaloniki European Council in 2003, discussions focused on five themes: (1) regional political development, (2) regional co-operation and free trade, (3) co-operation on justice and home affairs, (4) people-to-people contacts, and (5) science and education co-operation. A joint statement was issued after the meeting.
	Dialogue between cultures and religions
	Foreign Ministers were joined at lunch by western Balkans Foreign Ministers and the Turkish Foreign Minister. Foreign Ministers held a discussion on how countries might encourage mutual tolerance and respect.

EU: General Affairs and External Relations Council

Lord Triesman: The General Affairs and External Relations Council (GAERC) will be held on 20 March in Brussels. My right honourable friends the Foreign Secretary (Mr Jack Straw) and the Minister for Europe (Mr Douglas Alexander) will represent the UK.
	The agenda items are as follows:
	General Affairs
	Preparation of the European Council, 23 and 24 March
	The council will review the latest set of European Council conclusions focusing on jobs and growth, and Hampton Court follow-up.
	Financial Perspective: Inter-Institutional Agreement (IIA)
	The council may discuss the new inter-institutional agreement for the 2007–13 financial perspective. The Government's priority on the inter-institutional agreement is to secure an agreement that fully reflects the deal reached in December by the EU heads of state and government and the President of the European Commission.
	External Relations
	World Trade Organisation/Doha Development Agenda (WTO/DDA)
	Trade Commissioner Peter Mandelson will brief the council on progress in the WTO round. This follows the Brazilian state visit to the UK (7–9 March) and the meeting of the G4/G6 (EU, US, Brazil and India, plus Australia and Japan) in London (10–12 March). We expect a short discussion without conclusions.
	Western Balkans
	The council is expected to have a short discussion focusing on Bosnia and Herzegovina. The council is expected to agree conclusions on Bosnia and Herzegovina, the EU-Western Balkans informal Foreign Ministers meeting held in the margins of the Gymnich on 10 and 11 March and the death of Milosevic. The Government welcome the expected conclusions particularly on Bosnia and Herzegovina which reflect the need for it to fulfil stabilisation and association agreement conditions (legislative and administrative capacity, police and public broadcasting reform and the International Criminal Tribunal for the former Yugoslavia) as well as the need for progress on constitutional reform.
	Middle East Peace Process
	We expect the council to take stock of the developments on the ground following the Israeli seizure of Palestinian militant leader Ahmed Saadat. Discussions may also cover EC assistance to the Palestinian Authority.
	Iran
	The council will discuss the latest developments on the nuclear file, and may also cover wider EU-Iran relations. The council is expected to adopt conclusions.
	Iraq
	The council is expected to have a short discussion on the latest developments in the negotiations for government formation in Iraq. The council is also expected to approve the mandate for negotiations on a trade and co-operation agreement to commence once an Iraqi government are in office.
	Sudan
	The council is expected to have a discussion on the proposed transition of the African Union peace-monitoring mission in Darfur (AMIS) to a UN force, and the ongoing peace talks in Abuja.
	The Government welcome the African Union's decision, at its 10 March Peace and Security Council (AU PSC), to reaffirm its support in principle for a handover of AMIS to the UN, and to extend AMIS's mandate to 30 September. We believe the EU should now press the UN to work towards this date as a deadline for handover.
	Lebanon
	The presidency has invited Lebanese Prime Minister Siniora to address the council over lunch on the current situation on the ground.

Foreign and Commonwealth Office Services

Lord Triesman: I am delighted to announce that, on 1 April 2006, FCO Services will become an executive agency of the Foreign and Commonwealth Office.
	Mr Christopher Moxey, formerly director of global implementation projects for Financial Network Services, has been appointed as its chief executive.
	FCO Services will continue to supply the FCO with a broad range of products and services covering IT, communications, technical and protective security, estate and project management, logistics and purchasing, language translation, interpreting and training, VIP visits and organisation of major conferences both in the UK and overseas. FCO Services will employ approximately 1,200 permanent staff, many of whom are specialists, including about 100 staff serving at FCO missions overseas.
	FCO Services' long-term aim is to continue to improve the services it offers and the value for money provided to its principal customer, the FCO, while also broadening its customer base within government and the private sector. FCO Services will continue to improve productivity by streamlining work processes, standardising operating procedures, and improving staff utilisation rates.
	FCO Services' key performance targets from its launch will be as follows.
	Financial: FCO Services will aim to recover the full cost of its operations including an appropriate allowance for the cost of capital.
	Efficiency: FCO Services will continue to improve productivity by streamlining work processes, standardising operating procedures, and improving staff utilisation rates. As a result, the average utilisation rate target will improve by 10 per cent during 2006–07.
	Growth in income from wider markets: A major element of FCO Services' strategy is to increase wider market sales to reduce costs to and improve service delivery to government. Its target is to achieve 5 per cent, 5 per cent and 10 per cent cumulative growth in its wider market business over the next three years.
	Overall quality measure identified from independent customer survey results: FCO Services aims to monitor improvements in service delivery through feedback from customer surveys. It aims to achieve a customer satisfaction rating of either good or excellent for over 70 per cent of its work.
	FCO Services will report to Parliament on its success against these targets through its annual report.
	Copies of the framework document will be placed in the Library. A copy will also be available on the Foreign and Commonwealth Office website at www.fco.gov.uk.

Intelligence Services Commissioner

Baroness Amos: I am pleased to announce that my right honourable friend the Prime Minister (Tony Blair) has approved the appointment of the right honourable Sir Peter Gibson as Intelligence Services Commissioner under the terms of Section 59 of the Regulation of Investigatory Powers Act 2000.
	The appointment will commence on 1 April 2006 and will run for three years.

Interception of Communications Commissioner

Baroness Amos: I am pleased to announce that my right honourable friend the Prime Minister (Tony Blair) has approved the appointment of the right honourable Sir Paul Kennedy as Interception of Communications Commissioner under the terms of Section 57 of the Regulation of Investigatory Powers Act 2000.
	The appointment will commence on 11 April 2006 and will run for three years.

Iraq: Fusilier Gordon Gentle

Lord Drayson: My right honourable friend the Secretary of State for Defence (John Reid) has made the following Written Ministerial Statement.
	The Army's board of inquiry (BoI) into the death of Fusilier Gordon Gentle in Basra, Iraq, on 28 June 2004 has been presented to his family today. Fusilier Gentle, of C Company, 1st Battalion, the Royal Highland Fusiliers (1 RHF), was killed when the vehicle he was travelling in was attacked with an improvised explosive device (IED) while he performed routine escort duty.
	All 12 recommendations made by the board of inquiry have been accepted, and the majority of improvements have already been implemented. The BoI found the following.
	That the training provided by 1 RHF, both prior to deployment and in theatre, was appropriate and sufficient for its tasks. In the opinion of the board, the battalion should be commended for the quality of its training and conduct of operations.
	That Fusilier Gentle's training was adequate to enable him to conduct his specific duties, and that he had gained experience of his task as top cover sentry over the four weeks prior to the incident.
	That Fusilier Gentle was wearing the appropriate body armour, which was penetrated by fragments from the IED. It was accepted that full protection from a close-quarter explosion cannot realistically be provided by lightweight body armour. The BoI recommended, however, that body armour should be enhanced with extensions to protect the neck and armpit area. Body armour with these modifications has since been made available to British troops.
	That electronic counter measure (ECM) equipment was fitted and working correctly, but was ineffective against the device detonated. Additional ECM equipment was available but had not yet been fitted. The board recommended that where units were tasked with collecting equipment for issue, a series of triggers must be implemented to prompt the supply chain to ensure that such equipment is collected promptly. Significant modifications to the supply chain in theatre have since been instigated.
	That there was no delay to the military medical response.
	That the use of snatch Land Rovers was appropriate to the threat and task. Although it did not prevent the grievous injuries to Fusilier Gentle, it prevented significant further injury to other personnel in the vehicle. The vehicle was, however, penetrated in a number of places and investigations into increasing protection in certain areas should be carried out and options for greater protection for top cover sentries explored. The Ministry of Defence is currently addressing this with a project to upgrade the current snatch fleet.
	That 1 RHF implemented sensible measures to mitigate the predictability in timings and routes for the task in hand.
	That the convoy task on the day of the incident was conducted correctly and the use of top cover sentries was appropriate.
	That communications provided to the patrol were sufficient.
	The loss of Fusilier Gentle is devastating for all who knew him, and I extend my deepest sympathies to his family, friends and colleagues. The death of any member of the Armed Forces is a tragedy—the safety of our personnel is and must remain paramount and every possible precaution is taken to protect them.
	I have today placed a redacted version of the opinions, findings and recommendations of the board of inquiry in the Library.

Low Pay Commission

Lord Sainsbury of Turville: My right honourable friend the Secretary of State for Trade and Industry (Alan Johnson) has made the following Written Ministerial Statement.
	The Government asked the Low Pay Commission last summer to produce its next report on the national minimum wage by the end of February 2006. The Government are today publishing the commission's 2006 report and I would like to take this opportunity to thank the nine commissioners for their work on the report and in particular to thank the chair, the Lord Turner of Ecchinswell, for his stewardship of the commission over the past four years.
	The main recommendations put forward by the commission concern the rates of the minimum wage. The commission has confirmed its earlier recommendations, made in its 2005 report, that the adult rate of the minimum wage should be increased from £5.05 to £5.35 in October 2006, and that the development rate, which covers workers aged 18 to 21, should be increased on the same date from £4.25 to £4.45. The commission has also recommended that the Government should increase the 16 to 17 year-old rate from £3.00 to £3.30, again from October 2006.
	The Government have accepted these recommendations. The commission has also made a number of other recommendations. The Government:
	accept the recommendation that salary sacrifice schemes, including those for childcare vouchers, should not count towards the minimum wage;
	accept the recommendation that the Government should update guidance on the accommodation offset. However we will need to consider carefully the recommendation on the need for possible tightening of the legislation;
	will consider the recommendation that the commission be invited to review the apprenticeship exemptions in 2008 when preparing its 2007 remit; and
	will take into account its recommendation that enforcement should be stepped up in sectors that employ migrant workers when considering sectors for targeted enforcement action in the future.
	Copies of this Statement, the report from the Low Pay Commission, the Government's individual response to the commission's recommendations and our draft regulatory impact assessment have been placed in the Libraries of both Houses.

Police: Reorganisation

Baroness Scotland of Asthal: My right honourable friend the Secretary of State for the Home Department (Mr Charles Clarke) has made the following Written Ministerial Statement.
	Further to my Written Statements on 6 February and 3 March, I should like to make a Statement to report progress on the review of police force structures.
	The review was announced in September 2005 and followed the publication of HMIC's report, Closing the Gap, which revealed stark shortcomings in the current arrangements' ability to meet the policing needs of the early 21st century.
	My Statements of 6 February and 3 March set out the way forward for Wales and three English regions, the North-East, the North-West and the West Midlands. I now have the professional policing and financial assessments to enable me to identify which options will be of the greatest benefit to three more regions, namely the East Midlands, South-East and Eastern. I am therefore today meeting the representatives from the police forces and authorities in these areas. I will be inviting them to engage closely with me to consider taking forward the option for policing which I believe will be of greatest benefit to their communities. I will be inviting the police authorities concerned to respond by 7 April. I shall then make a final decision on how to proceed in these areas.
	My vision for the police service in the 21st century is that it should be close, responsive and accountable to the communities it serves, supported by larger forces with the capacity and specialist expertise to protect the public from wider threats such as serious and organised crime. The roll out of neighbourhood policing across the country by April 2008 is, with the creation of strategic forces, the key to achieving that vision.
	I shall make a further report to the House about the way forward for forces in Yorkshire and Humber and South-West shortly.
	Options proposed at this stage as suitable for progression
	East Midlands
	Merger of Derbyshire, Leicestershire, Lincolnshire, Northamptonshire and Nottinghamshire
	South-East
	Merger of Surrey and Sussex
	Hampshire, Kent and Thames Valley reconfigured as strategic forces
	East
	Merger of Cambridgeshire, Norfolk and Suffolk
	Merger of Bedfordshire, Essex and Hertfordshire.

Public Expenditure

Lord McKenzie of Luton: My right honourable friend the Chief Secretary to the Treasury (Des Browne) has made the following Ministerial Statement.
	Following the announcement that the Budget will take place on 22 March, HM Treasury plans to publish Public Expenditure Statistical Analyses 2006 on Tuesday 2 May 2006.